“Owl asks: Who is “growth” FOR? Developers definitely, privatised company bosses too – but ‘the workers’ – hhmmmm.”
Devon workers rank among the lowest paid in UK. We are an acute example of what is a general national economic malaise.
For decades Britain has had a big productivity gap compared to our rivals; it’s a result of low pay, inadequate training, and endemic short-termism in investment. It is aided by a “flexible” labour market. Why take risks investing in plant and machinery when you can hire and fire staff easily and still make a profit? Unless we break out of this culture we will continue to have a low paid economy, poor productivity and economic growth. A decade on from the banking crisis, wages haven’t reached pre-recession levels. George Osbourne’s austerity continues.
Heart of the South West, our Local Enterprise Partnership, has set wild targets to raise productivity and double growth by 2038; but don’t have too much faith in an organisation so out of touch with the reality of austerity that in 2017 it secretly voted its Chief Executive a 26% rise.
The flipside is that we have high levels of employment. This may have been a benefit during the depths of the recession but not now.
East Devon Conservatives in their local election manifestos claim they are delivering an economy that works for all and will deliver 10,000 new jobs. Doesn’t sound to me as if they are in touch with reality and addressing the fundamental problems either. With low pay, compared with the rest of the UK, the locally employed will always be out-bid for a house by those relocating from more affluent parts. Net inward migration to East Devon, from outside Devon, was 12,400 over the ten years to 2016.
The reality is that we have full employment and an ageing population in which the proportion of those of employment age will only grow at about 0.16% p.a. This results in a need of only around 230 jobs/year, including expected inward migration. For years EDDC Conservatives have been fixated on pushing job targets and using this to justify housing development well beyond what is actually needed. For example, in formulating the “Jobs-led Policy on” strategy for the 2013 Local Plan a target of 950 jobs/year was used to justify building a minimum of 17,100 houses over 18 years. Currently job creation is running at around 260/year. Where does the 10,000 new jobs target come from and who needs the 17,100 houses? It is not difficult to guess who benefits from this policy, but it certainly isn’t a policy that works for all of us.
Have Conservatives finally lost the plot on economic management as well?”